Calculated Risk Wed 2010-01-13 12:01 EST

HAMP Loan Modifications and the Fifth Amendment

CalculatedRisk

...The homedebtor enjoyed some initial success arguing a non-judicial foreclosure was a violation of due process...The homedebtors are named Huxtable and Agnew. Interestingly, Agnew is also listed as the "lead attorney" for the plaintiffs. The plaintiffs defaulted in late 2007, and the bank began a non-judicial foreclosure process in late 2008. The plaintiffs filed suit in federal court to stop the foreclosure, naming as defendants Timothy Geithner, the FHFA the lender and the servicer. The plaintiffs were allegedly denied a HAMP modification, and they claim the government and the bank violated the plaintiffs' right to "due process under the Fifth Amendment for failing to create rules implementing HAMP that comport with due process."...The judge refused to dismiss the case because the plaintiffs might be able to prove the government has "insinuated itself into a position of interdependence" with the bank.

amendment; Calculated Risk; HAMP Loan Modifications.

Calculated Risk Wed 2009-11-25 11:38 EST

Fannie Mae: $18.9 Billion Loss, Requests Another $15 Billion

CalculatedRisk

Press Release: Fannie Mae Reports Third-Quarter 2009 Results Fannie Mae (FNM/NYSE) reported a net loss of $18.9 billion in the third quarter of 2009, compared with a loss of $14.8 billion in the second quarter of 2009. ... Third-quarter results were largely due to $22.0 billion of credit related expenses, reflecting the continued build of the company's combined loss reserves and fair value losses associated with the increasing number of loans that were acquired from mortgage backed securities trusts in order to pursue loan modifications. ... As a result, on November 4, 2009, the Acting Director of the Federal Housing Finance Agency (FHFA) submitted a request for $15.0 billion from Treasury on the company's behalf.

15; 18; 9; Calculated Risk; Fannie Mae; losses; requesting.

Thu 2009-10-01 10:14 EDT

Mortgage Electronic Registration Systems (MERS): A System Designed to Create the Mortgage Back Security Bubble. >> Dr. Housing Bubble Blog

Mortgage Electronic Registration Systems (MERS)...claims to be a privately-held company and their function is keeping track of a confidential electronic registry of mortgages and the modifications to servicing rights and ownership of the loans. However, if you dig deeper into MERS and their shareholders you will find the same crony bankers...shareholders include AIG, Fannie Mae, Freddie Mac, WaMu, CitiMortgage, Countrywide, GMAC, Guaranty Bank, and Merrill Lynch...MERS allowed for the mortgage backed security business to explode since it allowed mortgages to be shipped off to Wall Street to be minced into tiny tranches and sold off by the big investment banks...MERS is a front for the mortgage and banking industry. It is claimed as a system of convenience but in reality, it is nothing more than the grease to lube up the housing bubble...what is significant about the Kansas Supreme Court finding has to do with the actual legal ownership of the note and deed especially when it comes to foreclosure...MERS is a straw man...provides ``an opaque veil that clouds not only the actual real ownership of the promissory note, but title to the property.''

created; Dr. Housing Bubble Blog; MER; mortgage; mortgage Electronic Registration System; security bubble; Systems designed.

The IRA Analyst Wed 2009-08-26 15:50 EDT

Washington Fiddles as Global Deflation Rages

The surprise facing Geithner, Bernanke et al is that by Q3, the true economic deterioration in many toxic assets will be clear for all to see. ``whatever relief that financial institutions and other residents of the hold-to-maturity world believe that they will receive through the modification of fair-value accounting and other official dispensation, they will lose through deteriorating economic fundamentals and falling cash flows supporting these assets as 2009 unfolds.''

Global Deflation Rages; IRA Analyst; Washington fiddles.

Mon 2009-01-19 00:00 EST

Credit Slips: Shared Appreciation Clawbacks

mortgage modifications

Credit Slips; Shared Appreciation Clawbacks.

Thu 2009-01-15 00:00 EST

Calculated Risk: Dugan: High Re-Default Rates

mortgage modification redefaults

Calculated Risk; Dugan; High Re-Default Rates.

Thu 2009-01-15 00:00 EST

naked capitalism: Over 50% of Mortgage Mods Fail Within 6 Months

mortgage modification redefaults

50; 6 months; Mortgage Mods Fail; naked capitalism.

Tue 2008-11-25 00:00 EST

Calculated Risk: NAR: Re-Default Rate 50% of Modifications

Calculated Risk; modifications; NAR; Re-Default Rate 50.

Sun 2008-08-24 00:00 EDT

Winter (Economic & Market) Watch >> Here They Go Again

Winter (Economic & Market) Watch >> Here They Go Again; many early subprime modifications failing; banks which ``moved early and aggressively to deal with this in terms of raising new capital, foreclosing instead of restructuring, and tightening down early on lax credit, may be the last people standing''; loss severity increasing; ``third quarter is going to be an unmitigated disaster for the financial sector'', ``foreign money will move in a big way to gobble up American assets''

economic; Go; Market; watch; winter.

Fri 2007-12-07 00:00 EST

Bear In Mind > The Big Rate Freeze: Good or bad for MBS?

Bear In Mind > The Big Rate Freeze: Good or bad for MBS? traditional NPV analysis modification versus foreclosure to be disregarded in favor of fast track loan modifications

bad; Bear; Big Rate Freeze; good; MBS; mind.